Section 9B of MMDR Act, 1957 empowers State Governments to establish District Mineral Foundation (DMF) to work for welfare and benefit of persons, and areas affected by mining related operations and make rules for composition and functions of the DMFs in the State. In 2015, Central Government circulated Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines and further vide order dated 15.01.2024 Central Government revised the PMKKKY guidelines with directions to State Governments to incorporate the same into the DMF rules framed by them. As per the PMKKKY guidelines 2024, at least 70% of the funds are to be spent on High Priority Sectors like drinking water supply, environment preservation and pollution control measures, health care, education, welfare of women and children, welfare of aged and differently abled, skill development and livelihood generation, sanitation, housing, agriculture, and animal husbandry. Up to 30% of the funds are to be spent on Other Priority Sectors like physical infrastructure, irrigation, energy and watershed development, and any other measures for enhancing environmental quality in the mining affected district.